Leverage JLP

Overview

Adrastea operates on two key fronts:

Passive Lenders: These are individuals or entities seeking passive income with minimal risk. By lending their assets, they earn an APY . Anyone can become a liquidity provider on Adrastea.

Boosters (Borrowers): These are active traders, yield farmers, and even other protocols aiming to amplify their positions by borrowing liquidity. Borrowers can leverage their collateral to borrow up to 2x their notional size, significantly enhancing their trading power and potential returns.

Adrastea’s introduction of Ledger Positions is a key component of its system. This feature records essential user details such as the amount borrowed, average entry price for leverage, and fees paid. By doing so, it enables precise management of leveraged positions. The ledger integrates liquidity providers and boosters, allowing the smart contract to execute predefined actions based on market conditions and user interactions, ensuring a seamless and efficient operation.

Many elements of Adrastea's lending protocol draw inspiration from Aave. In both systems, lending and borrowing rates are interconnected, determined by the utilization ratio, which is calculated as the total borrowed assets divided by the total supplied assets in the lending pools.